Definitive Guide to Hiring in Grenada

Hiring in Grenada

Hiring employees compliantly in Grenada means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Grenada so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Grenada; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Grenada

Employment laws in Grenada are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Grenada employment laws and Grenada policies here.

Employee Probation Period

• In contract of employment which do not specify the length of the probationary period, the following probationary periods shall be deemed to apply: 

• not more than one month in the case of unskilled workers; 
• three months in the case of other workers, but which period may be extended by a collective agreement.

Annual Leave in Grenada

Holidays in Grenada

Maternity Leave Grenada

• An employee shall be entitled under this Act to maternity leave for a period of three months, with maternity pay calculated and paid.
• In any case where the child of an employee dies at birth, or within one month thereof, her entitlement to maternity leave with maternity pay shall cease thirty days after the death of the child.

Paternity Leave Grenada

Sick Leave in Grenada

• After not less than twelve months’ continuous service, an employee shall be eligible for paid sick leave on the production of a medical certificate from a registered medical practitioner stating the nature and expected duration of the employee's incapacity.
• During sick leave, an employee shall be paid at the normal rate of wages less any amount to which the employee is entitled as a benefit by virtue of the National Insurance Act.
• An employer shall not be responsible to pay an employee for more than five occasions during a one-year period that he does not provide a medical certificate.

Working Hours in Grenada

• No employer shall require any employee with the exception of shift workers in the under-mentioned categories to work for more than the hours prescribed hereunder during any week, excluding overtime:

• for an agricultural worker, a construction worker or an industrial worker, no more than forty hours with the ordinary working days being Mondays to Fridays;
• for a clerical assistant or a shop assistant, no more than forty-four hours with the ordinary working days being Mondays to Saturdays;
• for a catering assistant no more than forty-four;
• for a domestic worker, or security guard no more than sixty hours.

Overtime in Grenada

• No employer shall require an employee to work overtime otherwise than pursuant to an agreement concluded between the employer and the employee.
• An employer shall pay to an employee who works overtime an amount calculated at a rate of not less than one and one-half times his wage for one hour in respect of the overtime worked, or twice his wage for one hour in respect of the overtime worked on a Sunday or public holiday.

Termination of Employment in Grenada

• The employment of an employee shall not be terminated by an employer unless there is a valid reason for such termination connected with the capacity or conduct of the employee or based on the operational requirements of the enterprise, or breach of contract of employment or disciplinary rules.

• Subject to section 74, a contract for an unspecified period of time may be terminated by the employer after the probationary period, if any, upon giving the following minimum periods of notice in writing:
  • one working day where the employee has been employed by the employer for less than one month;
  • one week where the employee has been employed by the employer for one month or more, but less than three months;
  • two weeks where me employee has been employed by the employer for three months or more, but less than one year;
  • one month where the employee has been employed by the employer for one year or more, but less than five years;
  • two months where the employee has been employed by the employer for five years or more.

• The minimum period of notice an employee shall give an employer is two weeks in the case where an employee has been employed for three months or for a longer period, and one month where the employee has been employed for one year or more.

• On termination at the initiative of the employer, an employee who has completed one year or more of continuous employment with his employer and who is not entitled to gratuity shall be entitled to be paid by the employer a termination allowance of not less than one week's wages for each completed year of service.

Notice Period in Grenada

• Subject to section 74, a contract for an unspecified period of time may be terminated by the employer after the probationary period, if any, upon giving the following minimum periods of notice in writing:
  • one working day where the employee has been employed by the employer for less than one month;
  • one week where the employee has been employed by the employer for one month or more, but less than three months;
  • two weeks where me employee has been employed by the employer for three months or more, but less than one year;
  • one month where the employee has been employed by the employer for one year or more, but less than five years;
  • two months where the employee has been employed by the employer for five years or more.

• The minimum period of notice an employee shall give an employer is two weeks in the case where an employee has been employed for three months or for a longer period, and one month where the employee has been employed for one year or more.

Severance in Grenada

Grenada Salary and Wages

13th/14th Month Salary in Grenada

• No
• There is no statutory requirement to pay the 13th or 14th month salary.
• There is no evidence of any bonuses being paid.

• Employers contribute at a rate of 6% and employees at a rate of 5% of an employee’s earnings
• The contribution ceiling is XCD 5,000 per month

Immigration Grenada

• Visa requirements for travel to Grenada are based on your country of citizenship. 
• Permanent residents of the United States are not exempt from these visa requirements. 
• A Grenada visa is not required for citizens of United States for a stay up to 90 days. 
• British passport holders don't need a visa to visit Grenada. 
• Similarly, citizens of many other countries such as Bulgaria, Cyprus, Greece, Ireland, Israel etc. do not require a Grenada visa.
• Citizens of non-visa exempt countries must apply for a tourist visa for short stay visits.
• A tourist visa has maximum validity of 90 days
• Grenadian businesses needing special or specific skills that are not available locally shall avail the Work Permit service, to bring skilled manpower from overseas. 
• It is essential that the business demonstrates that local talent is not available towards fulfilling their needs.
• CARICOM nationals who have a Caribbean Skills Qualification Certificate or equivalent are exempt from having to apply for a work permit. 
• They shall, however, obtain clearance from the Ministry of Foreign Affairs claiming that their skills match the requirements of the Caribbean Skills Qualification.
• Prerequisites for a work permit are as follows: -
  • The business that desires to bring foreign skills has demonstrated that local talent is not available
  • The business is in sound financial position and has met all its statutory needs towards the Government of Grenada

Value Added Tax (VAT) in Grenada

• VAT applies on the sale of goods or the supply of services within Grenada, and on the import of goods into Grenada
• The standard rate is 15%
• A reduced rate of 10% applies within the tourism sector and a 20% rate applies within the telecommunications sector
• Certain goods and services may be zero rate or exempt

Payments And Invoicing 

• Tax year is the calendar year
• Joint filing is not permitted
• Individuals are required to file separately 
• Tax returns must be filed by 31^st March following the tax year, and the balance of tax is due upon the filing of the return
• A pay-as-you-earn (PAYE) system is used to deduct tax from the salaries of employees
• Interest of 1.5% applies each month the balance of tax due is outstanding

Payroll Accrual in Grenada

Payroll Accruals Additional Information

Accrued Benefits in Grenada

Why use Global Expansion to hire in Grenada

Establishing a branch office or subsidiary in Grenada can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Grenada labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Grenada law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Grenada. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Grenada Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.